Global Newsbrokers Stockmarket Service
New York bond market 20:37:01
US TREASURIES FIRM AS WALL ST FALLS
Tuesday, January 11
Good old fashioned safe-haven buying
lifted the US bond market today as
Treasuries rose in line with a fall
among stocks. Negative corporate news
sent Wall Street sliding, encouraging
investors to move into longer-dated
securities.
The benchmark 10-year note also
benefited from the view that the Fed
remains determined to keep a lid on
inflation, a view born out by last
week's FOMC minutes.
Such is the demand for 10-year paper
that its yield differential with 2-
year notes has fallen to 1.3 per cent
from 2.4 per cent a year ago. This is
the smallest differential in three
years as curve flattening trades
continue to reflect optimism over
longer-term prospects for inflation.
The 10-year note was trading 7/32
higher at 100-01 for a yield of 4.24
per cent.
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